Business News, 14/07/2017

Kharkiv Aircraft Factory to Build Planes for Kazakhstan

Kharkiv Aviation Factory will release the An-74 aircraft for Kazakhstan, announced the general director of the aircraft plant Olexandr Kryvokon.

Kazakh customer has already paid $15 million. According to Kryvokon, he met with representatives of the newly established Ministry of Military Industry of Kazakhstan.

“We have finalized the contract and agreed that the aircraft’s production will go under a tolling scheme, while Ukrspetsexport will act as the guarantor of completion,” he stated.

It is noted that the assembly of the aircraft will begin in late summer. In September 2018, the enterprise plans to release an aircraft and then execute orders for another four airplanes for Kazakhstan.

Kharkiv plant resumed a payment of wages, which workers have not received since 2014. The debt to Kharkivoblenergo, local electric utility company, has already been restructured. The plant established a development program. It aims to modernize the An-74 and An-140 planes as well as upgrade the technological processes jointly with the Kharkiv National Aerospace University and the National Technical University “Kharkiv Polytechnic Institute.”

As Kryvokon said, currently they are forming a portfolio of orders for spare parts’ production for UAH 50 million ($2 million) and developing the maintenance program for aircraft.

Earlier, Kharkiv Observer reported that Kharkiv company is planning to invest in the aircraft factory.

Text: Anastasia Mitrofanova